Method and system for using third party reward points to pay for an item via a search engine

ABSTRACT

A system and method for implementation of product searches via a search engine over a networked computer system such as the Internet. In particular, a user may execute a search for product offers that are accompanied with reward components (e.g. reward points, rebates, coupons, etc.) and/or those that allow payment in whole or in part with payment components (e.g. reward points, rebates, coupons, etc.).

BACKGROUND OF THE INVENTION

The present invention allows a user to obtain product information from asearch engine and pay for found products with reward points fromindividual reward accounts or aggregated reward points or a combinationof reward points and other consideration such as cash, coupons, and/or acredit card.

Due to the wide reaching presence of the Internet, consumers are able toconduct transactions with virtually any entity having a web server orother presence on the Internet. Consumers are thus faced with countlessopportunities to (1) collect value (“reward components”) as a result ofperforming certain transactions or other Internet-based actions, and (2)redeem such collected value (“payment components”) in exchange forproducts and service offered by merchants on the Internet. As usedherein, the term “product” refers to any tangible item (e.g. a DVD) orintangible item (e.g. a property right) as well as a service (e.g.landscaping services) that may be performed for the consumer. A merchantis anyone that supplies a product to a consumer or user.

Thus, due to the multitude of available opportunities to either obtainvalue or redeem value, there is a need to provide consumers with a meansfor finding desired opportunities and offers via the Internet. The priorart provides simple searching tools such as search engines provided byGOGGLE, MICORSOFT and YAHOO, but does not adequately address the currentneeds of consumers as described herein.

A reward component of a transaction may be defined as any value conveyedby a merchant or other entity to the consumer or user as an incentivefor executing a transaction, performing an activity, etc. A typicalexample of a reward component is the awarding of reward points formaking a purchase, such as when AMERICAN EXPRESS awards 500 MembershipRewards points for making a $500 purchase with an AMERICAN EXPRESS card,or when The GAP awards 50 GAP Reward Points for making a $50 purchase ata GAP store. Other reward components include rebates, discount coupons,or any cash equivalent tender). It is noted that a reward component maybe an intangible perceived value in addition to real values listedabove.

Likewise, a payment component is essentially a reward component that isbeing used as payment in whole or in part for a product from a merchant.Thus, a consumer uses a payment component to pay for a DVD that costs$20 when he redeems 2,000 reward points (each worth one cent in thisexample) with the merchant. Likewise, the consumer may redeem previouslyaccrued rebates, coupons, etc.

Reward points (also referred to as frequent flyer miles) are used as anincreasingly common form of both reward components and paymentcomponents in consumer as well as business transactions. That is, inorder to attract and retain business customers, airlines, hotels, carrental companies, chain retailers, telecom providers, etc. havehistorically introduced frequent use programs that offer awards ofreward points, frequent flyer miles or other such incentives schemesbased on the distance traveled or use by that customer. Success hasenabled airlines to modify the manner in which mileage was acquired toinclude travel related purchases by consumers. For example, thedollar-based cost of a hotel stay may be awarded as reward points ormileage to a client account. Within the past several years, credit cardcompanies or other retailers and etailers have co-branded credit cardsin the name of the airlines and the credit card company where eachdollar spent using the card is recorded as a mile of travel or point inthe award program or some monetary value assigned by the issuer. Thesecards may additionally award bonus miles in coordination with userpurchases of preferred products or flights during preferred times.

With regard to FIG. 1, a model of the frequent flyer systems of theprior art is presented. Two different airlines servers are shownsurrounded by their related marketing partners, the first groupinglabeled Airline 1 100 and the second independently operated butfunctionally similar grouping labeled Airline 2 200. In order to luremore business travelers, the airlines 100, 200 have establishedmarketing agreements with travel related companies to provide thebusiness traveler with a more robust way to generate rewards in the formof frequent flyer miles. These marketing arrangements or associationshave typically involved credit card companies, phone companies, hotelchains and car rental companies. Any purchases made through these“co-branded” partners were then awarded to the user periodically. Bonusmiles or points may additionally be accumulated based on the user'sactions in response to offers made by the airline or in coordinationwith the partner company. For example, phone companies offer bonus milesto users based on the user's agreement to change phone service. Thesepoints are obtained by the partner companies by purchasing them from theissuing entity for redistribution as an incentive to utilize theirparticular goods and/or services. FIG. 2 shows some sample co-brandedcards that are representative of marketing agreements between TWA,Sprint, and Mastercard. In order to receive these benefits, the usermust sign up with each of the partner companies separately and providethe frequent flyer account number that is to receive the credited miles.A user either making phone calls or purchases in accordance with theagreements made with each of these partners will first accumulate avalue on the partner's system which in turn is periodically updated onthe airline reward server to reflect the value earned during thatperiod. FIG. 3 is representative of a typical user account that showsvarious earnings in the system transferred in from any of the co-brandedpartners. The records of the table in FIG. 3 identify the source of therewards, the dates they were recorded and the number of miles associatedwith that transaction. The user can view the accumulated miles byaccessing the airline reward server or by tracking the individual valuereported to the user through the various bills the user receives fromeach of the co-branded partners.

The prior art does not provide for a consumer to utilize relativelysmall amounts of reward points in any manner. In addition, a consumeroften can only redeem points in an airline-related manner (i.e. toobtain a free ticket or upgrade from coach to first class). This priorart does not recognize the need for a consumer to exchange reward pointsfor non-travel related goods, and in particular renders relatively smallnumbers of points useless. For example, a consumer that does not traveloften may have 500 points in United Airlines, 700 points in USAir, and1000 points in TWA, each of which is relatively useless in the priorart.

What is desired, therefore, is a system where users may submit rewardpoints or credits accumulated for other types of transactions forredemption or translation into a form readily acceptable by aparticipating merchant. A user should be able to pool or aggregate thevarious earned rewards that may exist in currently separate rewardserver systems where the resulting combined value may be used by a userof the system to acquire items of equivalent or relative value. A userwho has earned frequent flyer miles or rewards from several pointsissuers that, individually, are insufficient to receive any direct valuefor their mileage may be able to pool the miles acquired from severaldifferent points issuers to transfer the awards accumulated to thetrading system of this invention. The user may have the selected itemsdelivered by performing a purchase request by various means such as aproduct search over the Internet, dialing a toll free number for placingan order, or any other means of placing an order that will acceptpayment from this system.

It is also desired to provide a product search engine integrated with oradjunct to the reward points aggregation aspect of this invention toenable a user to easily find a desired product with a search of aplurality of resources such as the Internet and then pay for a productfound in the search with reward points from individual reward accountsas well as aggregated reward points from an exchange account.

SUMMARY OF THE INVENTION

This invention allows a user to execute a search for products (goods orservices) over a networked computer system such as the Internet and payfor the found products in whole or in part using a payment componentsuch as reward points from individual reward points accounts as well asaccumulated reward points held by a variety of award programs orco-branded partners (wherein individual accounts may or may not bemaintained) that are aggregated into an exchange account. The presentinvention also allows users to execute a search over the Internet foroffers of reward components, such as reward points, rebates, coupons,etc. for accumulation and subsequent redemption.

The user executes a product search using a search engine that accepts auser query and returns hits that link the user to merchant web sitesthat offer reward components and/or accept payment components for thedesired product. The user may then consummate a purchase transactionwith a merchant directly in the event that the merchant accepts paymentcomponents directly (e.g. a button may appear on the merchant's web siteindicating payment with reward points from a single account or anaggregated points account). Or, in another embodiment, the user mayutilize a payment process provided by the search engine that allows thesearch engine to broker the transaction with the merchant or other thirdparty and pay for the product with cash consideration (or itsequivalent) in exchange for redemption of the payment component (e.g. byreducing the user's reward points in his account with the searchengine). The user may also have a search option that indicate she onlywants to see web pages from merchants that will accept reward points topay for the products.

In particular, as specified herein, the present invention is a methodfor executing an online search over a networked computer system. A usercomputing device accesses a search entry web element (such as a toolbaror a web page) from a search engine web site running on a search enginecomputer adapted to allow a user to enter a search term associated witha desired product inquiry, and then initiates a search by entering asearch term into an input field on the search entry web element, thesearch term associated with a desired product inquiry. The usercomputing device transmits the search term to the search engine web siteover a computer network. The search engine web site uses the search termto perform a search for web pages matching the search term in accordancewith certain search criteria.

The search engine web site will then return to the user a plurality oflinks to web pages determined by the search engine web site to match thesearch term in accordance with the search criteria. The user computingdevice connects with a merchant web site associated with a selected link(selected by the user or by the search engine web site), and the userexecutes a transaction to purchase a desired product from the merchantweb site. Notably, the transaction includes tendering at least partialpayment for the desired product with a payment component previouslyaccumulated by said user. The payment component may for example bereward points, a rebate, a discount coupon, special offer, cashequivalent tender, etc.

The search criteria may for example include a payment component filterthat provides for display to the user of links to web sites that willallow payment for the desired product with a payment component. Thepayment component filter may provide that links to web sites that willallow payment with a payment component are displayed to the user withhighlighted indicia, and/or it may disallow display of links to thoseweb sites that do not allow payment with a payment component. The usermay select the payment component filter prior to initiating a search byselecting a designated button control displayed on the search entry webelement.

The search criteria may also include a product purchase filter thatrequires display to the user of links to those web sites that will allowa user to purchase a product associated with the search term. Theproduct purchase filter may provide that links to web sites that willallow a user to purchase a product associated with the search term aredisplayed to the user with highlighted indicia, and/or it may disallowdisplay of links to those web sites that do not allow a user to purchasea product associated with the search term.

The search criteria may also include an availability filter thatprovides for display to the user of links to web sites that can providea desired product based on date and time based availability criteria,and/or it may include a usability filter that provides for display tosaid user of links to web sites that can provide a desired product basedon usability criteria.

The search criteria may include an optimal value filter that providesfor display to the user of links to web sites that provide optimalpurchase value to the user for the desired product as determined by thesearch engine web site. The optimal purchase value is determined by thesearch engine web site in accordance with value criteria (e.g. enteredby the user). Examples of value criteria are the purchase price of theproduct, the availability of a reward component (e.g. reward points, arebate, a discount, or a cash equivalent tender)) provided by themerchant along with the purchase of the product. The links to web sitesthat provide optimal purchase value to the user for the desired productmay be ranked in order by the search engine web site as determined bythe amount of value provided to the user for the desired product. Thesearch engine web site may automatically link the user's computingdevice browser to the web site that provides the best value for purchaseof the desired product.

The search engine web site may provide a toolbar web element thatincludes a reward points payment button, which when selected willinitiate a points payment process. In the points payment process, apoints payment request is transmitted from the user computing device tothe search engine web site, and then the search engine web site arrangesfor the redemption of reward points from a reward point account storedon a reward point server on behalf of the user in order to at leastpartially pay the merchant for the selected product. This may be done bycommunicating with the reward server computer to determine the number ofreward points held in the reward point account on behalf of the user,and then redeeming reward points from the reward point account on behalfof the user, wherein the number of reward points in the reward pointaccount is decreased by the reward server computer and consideration forsaid redemption is conveyed from said reward server computer to thesearch engine computer. The search engine computer then arranges forpayment to the merchant in exchange for the selected product on behalfof the user.

The points payment process may optionally allow for the search engineweb site to arrange for the redemption of reward points from a pluralityof reward point accounts stored on a plurality of reward point serverson behalf of the user in order to at least partially pay the merchantfor the selected product.

A user profile database may be stored on the search engine computer,which would then use the profile associated with the user along with thesearch term to perform a search for web pages matching said search termin accordance with search criteria and a profile associated with theuser. The user profile database may include for example user productpreference data and user demographic information. The search engine website may also use the user profile to make alternate product searchesand transmit alternate product suggestions to the user computing devicebased on results obtained from the alternate product searches.

The process for exchange of the previously earned reward pointscomprises the steps of the user requesting the search engine/tradingserver computer to obtain reward points from a reward server associatedwith a rewarding entity with which the user has reward points. Thereward server computer decreases the user's reward point account by therequested number of reward points. The reward server computer may conveyconsideration to the trading server computer, where the considerationcorresponds in some predetermined proportion to the number of rewardpoints decreased in the account of the reward server. The trading servercomputer increases the reward exchange account on the trading serverassociated with the user by the requested number of points.

BRIEF DESCRIPTION OF THE DRAWING

FIG. 1 is representative of the prior art marketing arrangements used inreward programs;

FIG. 2 is a representation of the co-branded partners in a prior artaward program;

FIG. 3 is a sample of the prior art reward summary from an airlinefrequent flyer system;

FIG. 4 is a block diagram of the components of the present invention;

FIG. 5 is a block diagram of the system components of the presentinvention;

FIG. 6 is a data flow diagram of the process for a user to redeemrewards;

FIG. 7 is a data flow diagram of the user request for purchase of anitem at a merchant site;

FIG. 8 is a data flow diagram of the user account creation process onthe trading server;

FIG. 9 is a data flow diagram of the offer process by a reward programor by a merchant;

FIG. 10 is a data flow diagram of the process where a user may beredirected from a reward program to the trading server of the presentinvention; and

FIG. 11 is a block diagram of the search engine process of the presentinvention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

The present invention implements various methodologies to enable a userto implement a search engine service in an online commerce environmentfor an enriched product search, review, analysis, and purchaseexperience. Improvements over prior art search engines have beenimplemented herein that allow users to perform tasks that generally fallinto either of the following two categories: (1) to search for, compareand obtain desired products having a reward component (such as rebates,coupons, discounts, and reward points) associated with the purchase suchthat users earn the reward component(s) by making the purchase (andcontemporaneously redeem them with the purchase, if desired), and/or (2)to search for, compare and obtain desired products that may be obtainedin whole or in part by tendering an already-obtained payment component(such as rebates, coupons, discounts, and reward points).

Reward components are becoming more prevalent in today's commerceenvironment. A reward component provides an incentive to make a purchasesince it rewards the purchaser or user by giving him a rebate, discount,or reward points. Reward points, as known in the art, are often awardedby merchants as a reward for making a purchase with that merchant.Various types of reward or loyalty schemes have been implemented, butthe general concept is that the customer may earn and accrue rewardpoints based on the amount of money spent at a merchant, and then atsome point the customer may redeem some or all of his earned rewardpoints in exchange for a product or a reduced price on a product. Atypical example is when a merchant awards one point for every dollarspent with that merchant, so that a customer would spending $1,000.00would earn 1,000 points. That customer then redeems them at a rate ofone penny per point, so that the value of the 1,000 points is $10.00.The merchant would accept the redemption of its points against a productpurchase, for example a $15.00 may be reduced in price to $5.00 or thecustomer may obtain a $10.00 item free of further charges by redeeminghis 1,000 reward points.

In the present invention, reward points are logged in a reward pointaccount stored on a reward server computer that is associated with thereward issuing entity (e.g. the merchant). On aspect of the presentinvention, which is the subject of my U.S. Pat. No. 6,593,640, allowsusers to trade or exchange reward points into a common reward pointaccount so that they may combine the values of their various (disparate)reward points into one account. Thus, with reference to FIG. 4, aplurality of reward server computers 10, 12, 14, a trading server 20, amerchant computer 30 and a user computer 40 are shown in communicationwith a network 2. The network may comprise any type of communicationprocess where computers may contact each other. The present inventionwill be described with respect to an Internet-based network where thereward server computer 10 is associated with an airline frequent flyerprogram. Any type of reward server may also be used in this system. Thereward server computer may be a credit card reward program such as thatoffered by American Express where the user earns rewards based onpurchases, or an advertising based award program where the user earnsrewards by selecting advertising content for viewing on the Internet.

A user of this system may acquire and accumulate reward components suchas reward points through any prior art means such as shown on FIG. 1,which are then posted in a user's reward point account 52 that isaccessible through the reward server computer 10. The trading servercomputer 20 is in communication through the network 2 with a user on auser computer 40 and is additionally able to connect to the rewardserver computers 10, 12, 14 through the network 2 in accordance withtechniques well known in the art for Internet communications.Alternative electronic communications methodologies may be used, such asan ATM adapted to allow a user to access his accounts, or a smart cardreader, etc. The merchant computer 30 is representative of any site thatcan communicate with the network that has goods or services for sale ortrade. The merchant may have a direct relationship with the tradingserver where the direct relationship allows for a streamlined processfor allowing a user to acquire products offered via the merchantcomputer. Alternatively, the merchant computer may be an independentmerchant that does not currently have a profile defined in the tradingserver that will accept payment from another computer system in any oneof well known e-commerce embodiments.

The rewarding entities may be any type of entity that has a service forallocating points or consideration for user actions. The reward servercomputers 10, 12, 14 may be of any type of accessible server capable ofholding data about a user along with a corresponding earned value thatis negotiable for other goods, services, or points of another system. Inthe preferred embodiment, the airline reward server computer 10 mayrefer to one or several different airlines that have frequent flyerprograms or the like. The credit card reward server computer 12 mayrefer to any type and number of credit card server systems capable ofholding, increasing or decreasing a user's earned rewards acquiredaccording to the terms of the credit card program to which the user hasenrolled. The marketing reward server computer 14 may refer to one or amultitude of network accessible marketing systems that allow a user tohave an account where points or other redeemable value may be stored,updated and redeemed by a user. The trading server computer may be anytype of computer system that allows users to access the system in orderto perform the processes involved in this invention. In the preferredembodiment all of the systems described are accessible through theInternet and the user may automatically or freely navigate to any siteby means well known in the art.

The method of this invention of allowing the user to utilize a searchengine web site to find desired products that either (1) provide theuser with a reward component as an incentive for purchasing an item, or(2) allow the user to make a purchase with an already-accumulatedpayment component will now be described with respect to FIG. 11, FIG. 4and the data flow diagram of FIG. 6. The product search engine processis shown in FIG. 11. In one embodiment, a user is provided with a searchengine web element such as a search form page served from the searchengine trading server (such as when a user uses the GOGGLE web sitehttp://www.google.com). In the alternative, a search engine toolbar maybe downloaded from the search engine computer and executed with theuser's web browser as known in the art. In any event, the search entryweb element has an input field such as a text entry box for entering thesearch term as known in the art. Optionally, a web control element suchas a button may be provided to allow a user to indicate that the searchwill be for product purchases only (i.e. with a merchant) rather thanjust an informational search that may also pull up product reviews etc.For example, a user may enter the term “DVD Player” and select the“Purchases Only” button, and then submit the page to the search engineweb site as well known in the art. The search engine will return a listof web links as well known in the art that will redirect the user to amerchant's web site, in particular to a web page that features thedesired item (a DVD Player).

The search engine performs the search utilizing the user-entered searchterm (such as “DVD Player”) as well known in the art, but modified inaccordance with several aspects of the present invention. In one aspectof the invention, the search engine will implement a set of searchcriteria that may be set by the user and/or the search engine itself asdescribed herein.

The search criteria of the present invention include a payment componentfilter, a product purchase filter, an availability filter, a usabilityfilter, and/or optimal value filter. Any or all of these filters may beselected by the user prior to executing the search, for example byselecting buttons on a toolbar, or by selecting check boxes or the likeon a search engine web page, etc. In the event that additionalinformation is required (in accordance with the filter selected), thenthe user will enter such additional information in any manner madeavailable as well known in the art of web page design (e.g. text boxes,check boxes, radio buttons, drop down lists, menus, etc.). After all ofthe desired filters have been selected by the user, and all appropriatedata has been entered, then the user selects a “Search” button to sendall search criteria as well as the search term(s) to the search engineweb site and the search is initiated. It is also noted that filters maybe preset or automatically triggered or set by the user or a third partybased on certain conditions as may be defined.

The payment component filter will instruct the search engine to returnto the user computing device's browser a display of links to web sitesthat will allow payment for the desired product with a paymentcomponent. As previously described, a payment component ispreviously-acquired value such as a rebate, coupons, discounts, orreward points. These payment components may be accumulated by a userbased on prior purchases with that merchant, such as when a user makes a$100 purchase at RADIO SHACK and is awarded 100 radio shack points,which are logged in an account held on behalf of that user. That accountmay be increased (based on subsequent purchases) or decreased (based onreward point redemptions) as well known in the art. These paymentcomponents may also be accumulated by a user based on prior purchasesusing a certain credit card, such as when a user makes a $100 purchaseusing his AMERICAN EXPRESS card and is awarded 100 AMERICAN EXPRESSMEMBERSHIP REWARD POINTS, which are logged in an account held on behalfof that user. That account may be increased (based on subsequentpurchases) or decreased (based on reward point redemptions) as wellknown in the art. By selecting the payment component filter, the user isrequesting the search engine to return links to web sites that havealready indicated a willingness to accept payment (in whole or in part)in the form of an applicable payment component. These links to web sitesthat will allow payment with a payment component may then be displayedto the user with highlighted indicia, such as use of a bold,larger-than-normal, or underlined font, which will aid the user inseeing which links will allow use of a payment component such as rewardpoints. Likewise, an option may be set that would list only those linksto web sites that allow use of a payment component and disallow displayof links to those web sites that do not allow payment with a paymentcomponent.

The search engine may determine whether a merchant's web site wouldallow a user to make a purchase with a payment component such as rewardpoints in any manner known in the art, such as the user of metadata ormetatags embedded in the web page of that merchant. That is, byembedding certain keywords, control data or the like in a web page, thesearch engine can determine if the associated web site of that merchantwill allow the use of a payment component. Other methodologies foraccomplishing this objective known in the art may also be used for thispurpose.

The product purchase filter may be selected by the user to instruct thesearch engine to return only those links to web sites that will providefor a purchase of the product indicated in the search term. That is, anyweb site that provides information only (and no product purchaseavailability) such as a magazine review of the product, would befiltered out of a search with this option selected by the user. Thishelps the user eliminate the numerous links that would otherwise appearthat would not enable the user to make a purchase from that web site. Ofcourse, this is an option since the user may in fact want to be providedwith links to such web sites. These links to web sites that will allowpurchase of the product may then be displayed to the user withhighlighted indicia, such as use of a bold, larger-than-normal, orunderlined font. Likewise, an option may be set that would list onlythose links to web sites that allow purchase of the product and disallowdisplay of links to those web sites that do not allow purchase of theproduct.

The availability filter may be selected by the user to allow him toinput certain desired dates and times, for example when a user wants topurchase tickets to a play and wants to limit his search accordingly. Byselecting this filter, additional information will be entered such as arange of available dates and times, a range of unavailable dates andtimes, etc. Likewise, a usability filter may be employed, which allowsthe user to specify usability factors that may be implemented by thesearch engine in its product searches.

The optimal value filter provides for display to the user of links toweb sites that provide optimal purchase value to the user for thedesired product as determined by the search engine web site. The optimalpurchase value is determined by the search engine web site in accordancewith value criteria entered by the user. Examples of value criteria arethe purchase price of the product, the availability of a rewardcomponent (e.g. reward points, a rebate, a discount, or a cashequivalent tender)) provided by the merchant along with the purchase ofthe product. The links to web sites that provide optimal purchase valueto the user for the desired product may be ranked in order by the searchengine web site as determined by the amount of value provided to theuser for the desired product. The search engine web site mayautomatically link the user's computing device browser to the web sitethat provides the best value for purchase of the desired product.

Once the user has navigated through the various web pages found by thesearch engine and makes a purchase decision, then he will go through aproduct purchase process. The merchant will have various paymentoptions, including the typical credit card options, and may also have anoption to pay for the product with a payment component such as rewardpoints. In particular, the user may be given the option to pay for aproduct utilizing reward points from a single reward account (such ashis AMERICAN EXPRESS MEMBERSHIP REWARDS POINTS), or he may be able topay for a product utilizing reward points from multiple reward accounts(such as his MEMBERSHIP REWARDS POINTS and his VISA points), or he maybe able to pay for a product utilizing reward points from an aggregatedreward point account that holds reward points previouslyaggregated/exchanged from multiple single reward point accounts. Thisprocess is described in further detail with respect to a trading serverlater in this application. In that scenario, the search engine mayoperate as a trading service as well (i.e. aggregating reward pointsfrom various reward accounts and exchanging aggregated reward pointswith the merchants for the desired products). The search engine/tradingserver may pay the merchant for the desired product with cash or itsequivalent, or it may barter with the merchant by exchanging a user'sreward points directly for the product. In any event, the user'sindividual or aggregated reward points are decreased by a valueequivalent to the price of the product (and optionally a service feecharged by the search engine for brokering the transaction).

The user may also be given an option to pay for the product with rewardpoints held by a third party trading server in addition to the searchengine itself. In this case, the payment button would trigger abrokerage process amongst the merchant, the user, and the selectedtrading server that holds the user's aggregated reward points.

As a further embodiment, the points aggregation payment model discussedherein may be integrated with a search toolbar commonly used inconjunction with web browsers. In this case, the toolbar is alwayspresent for the user to take advantage of without having to navigate tothe home page of the search engine web site. There will be a “Pay WithPoints” button available on the toolbar to allow the user to pay for aproduct with rewards points as discussed above. This “Pay With Points”button may be used to transfer points directly to a merchant thataccepts points as described above, or it may cause a transaction tooccur wherein cash or cash equivalent consideration is transferred fromthe trading server to the merchant in exchange for the product. Thisfunction may operate with any type of merchant, even when not found in asearch. For example, a user is navigating a BEST BUY website and sees aDVD player he wants to buy. He goes through the checkout process, but inthe event that BEST BUY does not accept points for payment, thenselecting the “Pay With Points” button will trigger a transactionbetween the trading server and the BEST BUY merchant wherein cashequivalent is sent to BEST BUY, the product is shipped to the user, andthe user's aggregated reward points account is decremented accordingly.

Moreover, the search results may indicate which vendors provide optimaltransactions for the user, based on a user profile that indicates whichreward point program(s) the user is a member of. The search results mayindicate, for example, that a certain vendor provides a better exchangerate for American Airline points than it does for United Airline points,and since the user has a large number of American Airline points toexchange then that vendor would provide a preferred transaction that isof greater benefit to that user. Likewise, the search results page mayindicate that a certain vendor will accept payment for the productcompletely with reward points, or it may only accept 75% of the price inreward points, etc. This will enable the user to select a vendor thatprovides an optimal exchange for the user's reward points for a givenproduct. This information is of great value to a consumer in addition tolearning just the purchase price, since a more expensive price mayactually be more beneficial if the vendor accepts a greater ratio ofpoints. In addition, the search results may indicate if a vendor willaccept additional points that may be used for a donation to a charitableorganization, rather than only for a purchase of a product, such that atax deduction may be taken by the vendor (and/or the user) for donationof the reward points.

In another aspect of the present invention, a user is able to perform asearch via the search engine web site using a reward component filter;that is, for certain products that have a reward component offerassociated with that product. Reward components include but are notlimited to coupons, rebates, reward points and the like. This enablesusers to determine if the purchase of a certain product from a certainmerchant will be accompanied with a rebate, coupon reward points, etc.The user is also able to make comparisons to products from merchantsthat do not provide such value added offers and determine which offerpresents the best terms for the user. For example, the user may be ableto determine if any merchants are offering discount coupons or instantrebates that may be used to reduce the purchase price, which merchantsmay be offering reward points for the purchase of the product, and whichmerchants do not provide and such offers.

As previously indicated, the offer may be flagged as having a rewardcomponent offer associated with it by the use of an embedded flag ormarker (e.g. metadata) that signifies the reward component offer to thesearch engine. Other types of intelligent methods for extracting desiredinformation that are used by search engines in the art may also beemployed by the present invention.

The search engine functionality of the present invention also allows auser to make a comparative analysis between similar (but not identical)products in making a purchase decision. Thus, the user may comparesimilar but not identical DVD players from various merchants to make aninformed purchase decision. The search engine may also function topresent all comparable product offerings and make recommendations as tothe best price, the best value, the best product, or any combination ofthese factors.

Reward components, although typically obtained from a single merchant,may also be obtained from multiple merchants, for example when twomerchants are co-branded in a transaction and offer a reward componentusable with (1) either merchant independently or (2) only both merchantscombined. For example, an offer may be made wherein a purchase of aMCDONALD's hamburger will yield a reward component of a COCA-COLA soda.

The search engine service will have analytical tools that will enable itto determine the resources that may be required to obtain a productrequested by the customer as well as resources that may be available tothat customer such as from other users. For example, the searchengine/trading server may be able to determine that another registereduser has reward points accrued from a certain merchant that would beuseful for the customer to utilize in its product purchase, and thenbroker an exchange between the users that would be beneficial to bothusers. User A may have a large number of frequent flyer reward pointswith American Airlines and be glad to trade them or sell to them to UserB, who may need them for a special offer from American Airlines.

The search engine service of the present invention is configured forinteraction and interoperability with other search engines. This wouldallow the search engine to benefit from external resources that would beotherwise unavailable. For example, another search engine service mayhave preferred access to information and then be able to transfer thatpreferred information to the present search engine. Also, searches maybe handed off to alternative search engines if the (primary) searchengine is unable to handle the search (e.g. if search request traffic ishigh at a given time). Likewise, searches may be executed in parallel bemultiple search engines and the results collated for presentment to theuser.

The search engine of the present invention may feature advertisementsthat are based on a search engine rating system. Various colors may beapplied to signify various purchase values (e.g. red for an offer ofhigh consumer value, blue for lower value, etc.)

In an alternative embodiment, a portable device such as a personaldigital assistant is equipped with wireless Internet access through oneor more of various known technologies. A user may input search criteriaor may use automated data entry such as a bar code scanner, which isthen fed wirelessly to the search engine, and the results are displayedon the screen of the PDA for the user to act on.

Revenue may be generated by the present invention in one or more ofseveral manners. A transaction-based fee may be charged by the searchengine service to users for (1) executing a search, (2) viewing results,(3) linking to selected search results, (4) executing a purchasetransaction, (5) making a reward point exchange, and/or (6) redeemingreward points. Merchants and/or reward issuing/holding entities may alsobe charged transaction fees. Merchants or other advertisers may becharged insertion fees for placement of advertisements. A license orsubscription fee may also be charged by the service to user, merchants,advertisers, reward point issuers, reward point exchangers, etc.

The search engine service of the present invention allows for users tointeract in a bidirectional manner with merchants. That is, in knownsearch engine scenarios, a user will find a link of interest and clickthrough to the merchant's web site associated with the link. The usermay then browse that webs site and make a purchase based on the priceprovided by the merchant on the web page the user is viewing. In thepresent invention, the user is able to make a counteroffer to themerchant whereby a reduced price may offered and then accepted (or not)by the merchant.

In another embodiment, the user may enter requests for certain productsor rewards, and if the product or reward is not currently available,then the search engine service may store that request and notify theuser when such product or reward becomes available. Optionally, thedesired item may be held on reserve for a certain time period on behalfof the requesting user.

The search engine may allow for a user to specify certain destinationsor other geographic search parameters so that the search will be limitedto those parameters. This is particularly useful where the useranticipates that he will want to physically visit the location of themerchant, or where the shipping costs will likely be high and the userwants to purchase the product from a relatively close-by merchant, etc.In this case, entering geocentric terms will help the search engine userlimit the search results accordingly.

A real-time availability counter or other type of graphic indicator maybe used on the search engine web page to indicate to the user the numberof products that are available in inventory so that the user will havethat information instantly available. For example, there may be a numbershown that may change as inventory is depleted, or a bar graph may beused, etc.

As previously mentioned, a user is able to aggregate reward components(such as reward points) previously earned in various individual rewardaccounts into one reward exchange account stored on the search enginecomputer, or on a third party reward point exchange computer (alsoreferred to as a trading server computer). That is, a user is able toexchange or trade previously earned reward points in order to maximizetheir value to the user. The following description of the functionalityof the trading server computer applies regardless of the actual locationof the trading server software (i.e. on the search engine computer oranother computer). The trading server computer allows users to “log in”to access the functionality provided where the user may interact withapplications, forms or controls. For example, the user may view hisaccount information by using a web browser which may automaticallyselect or allow the user to enter the appropriate identificationinformation and then select buttons, links or other selectable objectsto navigate to the part of the system desired. In the alternative,navigation may be done automatically by the web site, and thus betransparent to the user (i.e. not directly controlled by the user). Ifthe user does not yet have an account (step 602), then the user may beenrolled per the flow diagram of FIG. 8 (step 604) as discussed below.The user, from the user computer, makes a request to the trading servercomputer 20 via communications flow 102 (step 600), requestingredemption through the network 2 for either all or a portion of thepre-accumulated reward points stored for the user in one of therewarding entities. A user's reward point account 52 is associated witheach of the reward servers but is only shown in FIG. 4 connected to theairline server for sake of clarity. Communications are made by thetrading server 20 to the user computer 40 via communications data flows104. The user may interactively select rewards to be redeemed, or thesystem may determine which rewards are to be redeemed based on apreviously defined user profile rule or other third party profile rule(such as an issuer) (step 606). The trading server computer 20 “obtains”the reward points balance information from a reward server 10, 12, 14stored in the user's account 52 by contacting the appropriate rewardserver via communication flow 110 (step 608) according to the user'srequirements, by using the connection parameters as defined in adatabase 54 on the trading server as shown in FIG. 5. In one embodiment,the trading server retrieves reward point account balance informationvia communications flow 114 (step 610) from the reward server for theuser. In another embodiment, the trading server transfers as part of thecommunication 110, the requested reward points to be redeemed (step612). The reward server computer 10 decreases the user's reward pointaccount 52 by the requested number of reward points (step 614). The termpoint is used to reference any earned value that has a cash equivalentor negotiable worth as in “frequent flyer” point or mile. The rewardserver computer 10 conveys consideration to the trading server computer20 where the consideration corresponds to the number of reward pointsdecreased in the user's account 52 on the reward server 10 (step 616).For example, the consideration may be in the form of a monetary creditto an account that exists between the trading server and the rewardserver, that gets paid at the end of a predefined billing cycle (i.e.every month) or in real time or upon execution of a trade or redemptionprocedure. The trading server computer 20 increases the reward exchangeaccount 54 associated with the user by the received number of points(step 620). The trading server computer 20 in turn, receives theconsideration from the reward server computer 10 (step 618).

Similar communications are made between the trading server 20 and thecredit card reward server 12, as indicated by the data communications120 made by the trading server 20 to the credit card reward server 12and the data communications 124 made by the credit card reward server 12to the trading server 20. Likewise, communications are made between thetrading server 20 and the marketing reward server 14, as indicated bythe data communications 130 made by the trading server 20 to themarketing reward server 14 and the data communications 134 made by themarketing reward server 14 to the trading server 20. In each case, thetrading server 20 increases the user's reward exchange account 54 by thereceived number of points from the credit card reward server 12 and themarketing reward server 14, respectively.

In the second part of the transaction (see FIG. 7), the user from a usercomputer 40 may make a request 150 to purchase an item from anassociated merchant computer 30 (step 700) which the user may access asa result of executing a search with the search engine web site aspreviously explained. In the preferred embodiment, the merchant computersystem will be a networked computer system accessible via the Internet.The user would visit the merchant site by selecting on a link from thesearch results page. The user may identify one or many items to beacquired from one or several merchants 30. The user elects to pay forthe desired item with a reward component such as reward points (step702), and the user is redirected from the merchant server to the tradingserver at step 704. If the user does not have an account (step 706) thenthe user is enrolled per the flow diagram of FIG. 8 (step 708). Themerchant server computer 30 would confirm that the user has sufficientreward points or other reward value to purchase the selected item bycommunicating with the trading server 20 via communication flows 140,144 in order to check the user's reward exchange account 54 (step 710).(Optionally the user may decide to effect payment with reward pointsfrom single reward point source, such as with his AMERICAN EXPRESSMEMBERSHIP REWARDS points.) If the user does not have enough points inhis reward exchange account at the trading server 20, then the processof trading more points from the user's reward point account 52 into hisreward exchange account 54 is executed by branching to the flow diagramat exit point A (step 712) which brings the process to the flow diagramin FIG. 6 discussed above. After enough points are traded, the usercontinues with the process from step 712 as shown in FIG. 7. The usermay also borrow additional points to make purchases. The trading servercomputer 20 would request the merchant computer to deliver the item tothe user. The user delivery information may be retrieved from thetrading server computer 20 or may be supplied in some other manner. Thetrading server computer 20 would decrease the user exchange account 54by the number of points or value corresponding to the purchased item(step 714). The trading server computer 20 conveys consideration (orinstructs a third party to convey consideration) to the merchantcomputer 30 equivalent to the cost of the item by means well known inthe art of electronic commerce (e.g. by a preexisting account, creditcard, etc.) (steps 716, 718). In the alternative, the consideration maybe a direct transfer of points to an account associated with themerchant. The merchant then completes the transaction at step 720, forexample by delivering the purchased item. A transaction fee may becharged by any of the parties in the form of points, cash or cashequivalent, etc. Also, a delivery fee may be charged for delivery of theproduct.

Policies and profiles may be established to automatically contact eachof the reward servers according to a user profile, merchant profile,broker dealer profile, issuer profile, or product provider redemptionprofile (see FIG. 5) to transact the required payment for an itemselected by a user. This profile may indicate the order of redemptionand method of providing funds sufficient to cover the purchase afterredeemable points are exhausted. For example, if a user has a preferredair carrier where the user would like to retain mileage in that rewardsystem, the user may specify a priority of use indicating the rewardresources that should be exhausted prior to accessing the most desirablerewards. Following the selection of an item to be acquired, the servermay contact all of the reward resources according to this profile toselectively redeem each as required to meet the purchase price. Theprocess may be performed in real time or as a background processtransparent to the user where the user may select how the transactionshould proceed. If the user exhausts lower personal worth resources fromthe reward servers, the system may be required to contact the userbefore the transaction is allowed to proceed to redeem points. Aclassification system may also be used to indicate rewards of similarworth or category. If for instance, a frequent flyer program supportsmultiple classifications of miles that may be redeemed differently, theuser may optionally define how those resources should be managed duringredemption. The redemption process would then honor those rules electedby the user to select from several different reward programs instead ofredeeming rewards strictly on a value required from the first rewardprogram contacted or based upon a preferred hierarchy defined by thesystem or its members.

FIG. 8 describes the process steps involved in enrolling a user toutilize the trading server. The user accesses the trading server 20 atstep 800 and selects an option to create a user account at step 802. Thedata entered by the user may be used in determining whether a userallows unsolicited offers to be presented from the trading server. Inaddition, offers may be provided in an automatic fashion without userinteraction. The user's preferences for manufactured goods services,products, travel destinations, hobbies, interests or any other userentered criteria may be stored in the database for subsequent use by thesystem (steps 804 and 808). The trading server has the ability toreceive offers from reward servers or merchants (steps 806 and 808)which may then be directed in real time to users based on the databaseprofile information provided by the user or other third party (e.g. anissuer, merchant, etc.) (see FIG. 9). At step 900, the reward servercontacts the trading server with an offer to redeem points. Similarly, amerchant may contact the trading server with an offer to be distributedto members (step 902). The trading server records the offer in adatabase (step 906), and the trading server may record a limitedconversion rate in its database (step 906). The reward server may thencontact the user with an offer to redeem at step 908. Optionally, theprocess may branch to the flow diagram in FIG. 6 discussed above (step910).

The trading server may also be contacted in response to a button orhyperlink located on a web page accessible by the user from the airlinereward server (FIG. 10, steps 1000 and 1002). The process may continueto that described with respect to FIG. 6 for trading points into areward exchange account (step 1004). In a similar manner, hyperlinks orcalling routines may allow a user to access a reservations system ormerchant from the trading server. The link would direct the user topartner or associated air carriers where the points in a user exchangeaccount on the trading server 20 may be used to acquire hotelaccommodations, special offers, reduced fare or free flights.

The system used to implement the aforementioned method will now bedisclosed with respect to FIG. 5. The system is comprised of a tradingserver computer connected to a network of computers where a userinterface is established whereby a user from a user computer may accessthe server to request the transaction to contact a reward servercomputer system. In the preferred embodiment, the server has memorymeans for storing the user account information, user profiles and ruleswhich may be specified by the user, system, or merchant. The tradingserver also has communications means to allow users to access the serverand to allow the trading server to contact reward servers and processingmeans to interpret the rules and coordinate the contact to therespective servers. The processing means is adapted to allow the user torequest and exchange consideration for rewards from reward servers. Theprocessing means additionally is adapted to coordinate the exchange ofconsideration and increase or decrease the user exchange accounts storedin memory in response to actions performed by the user computer, rewardserver and merchants and issuers.

In the preferred embodiment, the memory means comprises a databasestructure that is used to record the transactions associated with thepreviously described method. Records indicating the changes and currentvalue of user exchange accounts are updated according to the requestprocessed by the processor. This invention also implements the recordingand subsequent reporting of factors such as the average redemption valueredeemed to date, the rate of redemption, and other liquidationliability factors.

In response to a request for exchange or redemption, the trading serverlooks up the contact properties of the reward server to be contacted.The user information is submitted to the reward server to display theavailable points that may be redeemed. In another embodiment, therequest additionally contains a value to be redeemed. The processorestablishes a communication link with the reward server and atransaction request is sent to the processor of the reward server. Theprocessor of the reward server may perform actions that may allow orrefuse the requested action, or suggest an alternative action. Inanother embodiment, the trading server processor may be granted directauthorization to modify the user's records in the reward server databasewithout analysis by the processor of the reward server. A conversionrate may be applied to the transaction such that the reward serverreduces the available rewards or value in the user's account. The rewardserver then transfers consideration to the trading server thatcorresponds to the value reduced or available in the reward system. Inresponse to the receipt of the transfer or approval of the transfer, thetrading server increments the user account balance to reflect thereceived consideration and the connection to the reward server isterminated. A transaction log may be used to record each of thetransactions in case a reconciliation process is required at a latertime. The new value, whether increased or decreased in the user'sexchange account may then be stored until a user finds an item to bepurchased.

The user selects the desired object from the merchants by performing asearch for the type of product or service to be procured. In oneembodiment, the trading server contacts the merchant server to return tothe user a list of products that match the user's search criteria or ifthe user had specified in detail what was desired, the product may bedirectly acquired from a merchant or broker/dealer. A communication linkis established between the trading server and the merchant computer ordesignee for e-commerce. Direct acquisition may be enacted by contactingthe merchant or broker/dealer computer and supplying the user indicia,the product indicia, and the redemption value sufficient to secure thetransaction. In response to the transaction request, the merchantcomputer or broker/dealer will receive the consideration supplied andcontract for the delivery of the product. Unfulfilled requests arestored and when available can be pushed to the user. In anotherembodiment, the consideration required for the item selected is sent tothe trading server where based on the available points in the user'sexchange account the trading server will determine whether theconsideration is available. An authorization process may be incorporatedat this point to request authorization from the user or in a moresimplified process, the consideration will be transferred to themerchant computer and the user's exchange account will be reduced. Themerchant computer will receive the consideration and will effectuate adelivery transaction to be issued.

The goods may also be placed under direct control of a distribution armof the trading service so that the user places the order with thetrading service directly and the merchants are not directly involvedwith the sale of the goods.

In a situation wherein the user finds it necessary or desirable toreturn a product, such as when the product may be damaged, thenprovision is made for the restocking of points back into the useraccount (rather than a cash refund), with an optional restocking feebeing charged to the user in the form of points.

Thus, the present invention provides a liability management system forissuers of reward points, which allows them to take points off the booksand eliminate them, if desired, at a discounted rate. This systemenables the sale or repurchase of points with a trading strategy inwhich points need not expire, or may be retired at a controlled rate orvalue. The value ascribed to the points (the par value) may be changedby the points issuer/aggregator based on the rate of redemption of thepoints with respect to the issuers ability to maintain cash flow. Thatis, the par value of the points may be varied by the points issuer,after issuance, based upon factors such as the rate of redemption ofpoints by other users. For example, if the rate of redemption becomesexcessively large, this may negatively impact the cash position of theissuer since points redemption generally results in cash flow out of theissuer to product and service providers. Thus, when an issuer determinesthat the cash flow is excessive, it may reduce the par value such thatsubsequent redemptions will result in a lower cash flow rate.

The present system may be implemented by means of a smart card (orcredit/stored value card) wherein frequent use points may be accumulatedon the user's card every time the card is used for associatedapplication. For example, if a user uses his smart card to pay for ahotel that normally gives reward points, those reward points may bestored on the smart card. Likewise, when the card is used for thepurchase of an airline ticket, the points would be added to the smartcard. The user may then redeem the accumulated reward points byinserting the card into a reader associated with a computer connected tothe Internet or other authorized communication system (e.g. an ATM orother reader). The trading process proceeds as described above, exceptthat the points are obtained directly from the smart card or systemrather than a reward server. Information provided to the user regardingthe user's reward points is updated after every transaction.

The user may have a credit card, debit card, or stored value card thatis linked to their points account in such a way as to permit them to payfor purchases with a merchant by using the card, wherein the merchantuses the existing credit card payment infrastructure as if payment werebeing made/authorized by a bank linked to the credit card or debit cardaccount, but in fact the card may be linked to the user's pointsaccount. In this manner, the user and merchant can use the pointsaccount to pay for purchases in a seamless manner whereby points areused for consideration rather than or as a supplement to cash andtraditional credit.

Other aspects of this invention will now be disclosed that will enhancethe reader's understanding of the application of this invention.

Merchandisers also benefit from the use of this system where anothermarketing channel is afforded for products that are often purchased byfrequent travelers with high disposable income. Products and servicesencompassing jewelry, flowers, limousine transport, timeshare rental maybe exchangeable for points stored in this system. Items purchasedthrough the system may also be paid for by a combination of points andcurrency which might be the case when a user does not have enoughaccrued points to meet the purchase consideration of an item selected.There may be designations where a percentage of the product may be paidwith points, with the rest in cash or cash equivalent.

It is anticipated that high quality limited access products may benefitfrom the distribution methods afforded by this system. For example,companies like SONY and Chanel may take advantage of this distributionmeans without impacting the level of quality or excellence associatedwith their products.

Manufacturers can discount or liquidate goods for points in a mannerthat doesn't negatively affect the perceived value of the goods (i.e.not in direct competition with the mainstream sales). That is, themanufacturer can place overstocked, end of run type goods and the like,place them in the chain of distribution for exchange with points, andnot be in direct competition with cash sales of its mainstream products.

Resort destinations that are managed by property management companiessuch as RCI may be integrated into this system where instead of tradingaccommodations with only those having similar property, it is nowpossible that the rental of the property may be achieved by conversionfor points or points plus a property timeshare or a percentage of cash.Rooms may be booked with discounts that vary in accordance with thenumber of rooms available, which can change in real time as per thechanging availability of rooms.

Offers may be distributed to users of this system where substantialrebates or reduced rates are described in the offer. Time sensitiveproduct offerings can also be accommodated in the system where the valueof the product is decreased according to a life span of the product.Time sensitive product offerings such as food products or concerttickets, airline departures, hotel room rentals and the like can have anassociated diminishing or escalating value based on the length oravailability of the offer. This invention may be used to provide hotelrooms such that when rooms are available and the date of use approaches,the rental price may decrease (the same methodologies may be used tosell advertising space that is time-sensitive).

Using this system it is now possible to coordinate the products ofseveral different providers into one package. A user of this system maytherefore select an airline, hotel, car rental and Broadway show ticketsin New York, individually or in a prepared package from one location bytrading points where the package may not have existed before where thetrading system coordinates all aspect of the transaction and reduces theuser's exchange rewards in a corresponding manner.

A purchasing club or group may utilize the present invention in order topurchase items in bulk. For example, a transaction may be configuredwherein a purchasing club can obtain 100 TVs at a substantial discount,if and only if they agree to purchase all or a substantial portion ofthem.

Other purchasing leverage not specifically addressed previously may alsobe acquired by combining the power of a pool of users of this systemwhere these users may be allocated access to products or services notgenerally distributed to the remainder of the system users. Pointscollected in the system by these users may afford them access to limiteddistribution channels where higher discount levels or premium productsmay be acquired. Direct access to cartel or special club products suchas diamonds, bulk or price-advantaged products, duty free items andother restricted access product or service offerings are alsoaccommodated through the coordination of the trading server with thesespecialized service and product providers. For example, a preferredclient distribution channel such as found in a European market forluxury goods would be made available to users of this system where theprices for the objects in this preferred channel may be significantlylower than retail for objects that are typically reserved for limiteddistribution at premium prices. The trading server may additionally haveexclusive rights to allocate access to certain premium products,services, events, travel destinations or accommodations in accordancewith any right or grant permitting such allocation to any user of thesystem. A distribution channel may make available exclusive products forall or a limited amount of the members of the system where the tradingserver system controls access to the offer.

Parameters associated with the available quantity, duration, exchangerates, etc may be input into the system to be used in the allocationalgorithm to restrict the offer. Upon user access, the trading serverwould, in these cases, modify the premiums offered to reflect theimmediately attainable items for the current user and may additionallydisplay or provide access to premiums that may be acquired throughpayment by other means (i.e. cash, charge, debit) to make up thedifference between the user's available points and the points requiredto accept the offer.

In one embodiment, the present invention utilizes a graphic on a webpage that shows the availability of an item, such as the number of itemsleft (or about to expire) for a given offer—similar to a running meter.This meter would be updated in real time so that a user would know whenthe offer will soon be expired due to unavailability of an item.

In another embodiment of this invention, airlines seeking to providehigher levels of personalized service for their business travelers willprovide access to the Internet or access to in-flight services such asvideo games, for a fee or in place of granting mileage rewards ontranscontinental or transatlantic flights. Access to video games orother services (e.g. meals and drinks) may be afforded to the travelerwhere the availability of different games depends on the number ofreward points traded in by the traveler. The rewards may be convertedusing the trading server of this invention, where the user may opt toforego collecting mileage in return for accessing on-board entertainmentprovided in a standalone mode or in a linked mode. For example, usersmay select to play video games, access the Internet or utilize Email viaa seatback or tray table mounted interface and controller. The user mayoptionally connect a laptop computer to an interface port of theaircraft using an Ethernet, parallel, USB connection or proprietaryconnector provided by the air carrier. In the preferred embodiment, theuser would select the connection speed and type for communications basedon whether in-flight or external services were to be accessed. Othertypes of business services may additionally be used and accounted for,such as using network printers or fax equipment. RF, satellite ormicrowave based communications may be used for real time communicationswhere sufficient geographical coverage is provided.

The interface would allow a user to login using the frequent flyeraccount information or preferably, the trading server account login idand password, where the user may use points awarded from another aircarrier or point server to “pay” for the services accessed. The accountbalance from the trading server may be transferred to the localcontroller prior to takeoff for each user that logs in to the tradingserver. Once the plane has departed, depending on the linking or accesscapability afforded by the air carrier or service provider, the user'saccount may be modified in real time or upon reconnection followinglanding, based on services selected by the traveler. If a real time linkis supported, the user's exchange account may be periodically debitedaccording to the services selected and duration of use, certifiedagainst the passenger log.

In another embodiment, the value of the reward points may fluctuate as afunction of the company's performance, which may be measured byreference to the price of its stock, revenue, earnings, or some otherparameter that is agreed to that reflects the relative performance ofthe company The number or value of points outstanding being redeemedalso may also be a factor). In this manner, companies that perform wellwould provide an additional incentive to a user for using their frequentuse program rather than a competitor's program. For example, all otherparameters being the same, a user would likely choose the Acme creditcard company over the Beta credit card company when the user determinesthat the Acme company performance results in a 10% increase in the valueof points otherwise earned by using its credit card. The value may alsofluctuate as a function of the number of points outstanding or thedesirability of the issuer to reduce its liability or make it morerobust.

In a further embodiment, the present invention may be utilized to allowusers to pay for items won in an auction with points aggregated asdescribed above. In this embodiment, a user may participate in anauction, such as one of many known auction services executed over theInternet, whereby a user selects an item that he or she would like tobid on from a web page provided by a merchant computer web site, or evenby a web site hosted by the trading server computer or a third partyauction service provider. The auction may be carried out in any numberof well known ways, such as for example when all bidders may bid upuntil a date and time when the auction ends, and the highest bidder orgroup of bidders wins the auction. The winning bidder may then designatereward points from his or her reward points exchange account to be usedto pay for the item bid for and won in the auction. The accumulatedreward points are selected by the user, and consideration is conveyed tothe merchant/seller in exchange for the auctioned item as describedabove.

I claim:
 1. A computer-implemented method for a reward server computerto facilitate an online purchase transaction using a points paymentprocess over a networked computer system comprising the reward servercomputer executing the steps of: sending to a search engine computer anindication of a number of reward points held by the reward servercomputer in a user reward account on behalf of a user; receiving fromthe search engine computer a request to execute a points payment processby using a selection of the reward points from the user reward accountin order to pay for at least part of a purchase transaction between theuser, the search engine computer, and a merchant computer from which aproduct selected for purchase by the user will be provided to the user;decreasing the user reward account by the selection of reward points;and conveying to the search engine computer consideration proportionateto the selection of reward points decreased in the user reward accountso as to enable the search engine computer to make payment therefrom tothe merchant computer for the product selected for purchase by the user.2. The method of claim 1 wherein the reward points comprise rewardpoints issued by a credit card issuer based on prior purchases with acredit card.
 3. A reward server computer programmed to facilitate anonline purchase transaction using a points payment process over anetworked computer system by: sending to a search engine computer anindication of a number of reward points held by the reward servercomputer in a user reward account on behalf of a user; receiving fromthe search engine computer a request to execute a points payment processby using a selection of the reward points from the user reward accountin order to pay for at least part of a purchase transaction between theuser, the search engine computer, and a merchant computer from which aproduct selected for purchase by the user will be provided to the user;decreasing the user reward account by the selection of reward points;and conveying to the search engine computer consideration proportionateto the selection of reward points decreased in the user reward accountso as to enable the search engine computer to make payment therefrom tothe merchant computer for the product selected for purchase by the user.4. The reward server computer of claim 3 wherein the reward pointscomprise reward points issued by a credit card issuer based on priorpurchases with a credit card.
 5. A computer-implemented method forexecuting an online purchase transaction over a networked computersystem comprising the steps of: a. an online purchase transactioncomputer providing to a user device an option to cause payment to bemade to a merchant computer for the product selected for purchase atleast partially by reducing rewards from a designated user rewardaccount stored on behalf of the user on a reward server computer that isdifferent from the merchant computer; b. the user operating the userdevice generating a payment request to cause payment to be made to themerchant computer for the selected product, said payment requestcomprising an election to cause payment to be made to the merchantcomputer for the selected product at least partially by reducing rewardsfrom a designated user reward account stored on behalf of the user on areward server computer that is different from the merchant computer; c.the user device transmitting the payment request to the online purchasetransaction computer; and d. in response to receiving from the userdevice the payment request comprising the election of the option tocause payment to be made to the merchant computer, the online purchasetransaction computer communicating with the reward server computer toarrange for the reduction of rewards from the designated user rewardaccount in order to at least partially pay for the selected product by(i) requesting the reward server computer to reduce the rewards in thedesignated user reward account by a designated amount; (ii) receivingfrom the reward server computer consideration corresponding to therewards reduced in the designated user reward account; and e. the onlinepurchase transaction computer conveying consideration to the merchantcomputer to at least partially pay the merchant computer for theselected product.
 6. The method of claim 5 wherein the rewards comprisereward points issued by a credit card issuer based on prior purchaseswith a credit card.
 7. The method of claim 5 wherein the payment requestadditionally comprises an election to pay for the selected product atleast partially by reducing rewards from at least one additionaldesignated user reward account stored on behalf of the user on anadditional reward server computer that is different from the merchantcomputer; and wherein the online purchase transaction computer, inresponse to receiving the payment request, additionally communicateswith the additional reward server computer to arrange for the reductionof rewards from the additional designated user reward account in orderto at least partially pay for the selected product by (i) requesting theadditional reward server computer to reduce the rewards in theadditional designated user reward account by an additional designatedamount; and (ii) receiving from the additional reward server computerconsideration corresponding to the rewards reduced in the additionaldesignated user reward account; and conveying additional considerationto the merchant computer to at least partially pay for the selectedproduct.
 8. A networked computer system for executing an online purchasetransaction comprising A. an online purchase transaction computercomprising processing circuitry programmed to: a. provide to a userdevice an option to cause payment to be made to the merchant computerfor the selected product at least partially by reducing rewards from adesignated user reward account stored on behalf of the user on a rewardserver computer that is different from the merchant computer; b. receivefrom the user device a payment request to pay for the selected product,said payment request comprising an election of the option to causepayment to be made to the merchant computer for the selected product atleast partially by reducing rewards from a designated user rewardaccount stored on behalf of the user on a reward server computer that isdifferent from the merchant computer; and c. in response to receivingfrom the user device the payment request comprising the election of theoption to cause payment to be made to the merchant computer, communicatewith the reward server computer to arrange for the reduction of rewardsfrom the designated user reward account in order to at least partiallypay for the selected product by (i) requesting the reward servercomputer to reduce the rewards in the designated user reward account bya designated amount; and (ii) receiving from the reward server computerconsideration corresponding to the rewards reduced in the designateduser reward account; and d. conveying consideration to the merchantcomputer to at least partially pay the merchant computer for theselected product; and B. a user device comprising processing circuitryprogrammed to: a. receive from the online purchase transaction computeran option to cause payment to be made to the merchant computer for theselected product at least partially by reducing rewards from adesignated user reward account stored on behalf of the user on a rewardserver computer that is different from the merchant computer; and b.transmit to the online purchase transaction computer the payment requestto pay for the selected product.
 9. The system of claim 8 wherein therewards comprise reward points issued by a credit card issuer based onprior purchases with a credit card.
 10. The system of claim 8 whereinthe payment request received by the online purchase transaction computeradditionally comprises an election to pay for the selected product atleast partially by reducing rewards from at least one additionaldesignated user reward account stored on behalf of the user on anadditional reward server computer that is different from the merchantcomputer; and wherein the online purchase transaction computer inresponse to receiving the payment request, additionally communicateswith the additional reward server computer to arrange for the reductionof rewards from the additional designated user reward account in orderto at least partially pay for the selected product by (i) requesting theadditional reward server computer to reduce the rewards in theadditional designated user reward account by an additional designatedamount; and (ii) receiving from the additional reward server computerconsideration corresponding to the rewards reduced in the additionaldesignated user reward account; and conveying additional considerationto the merchant computer to at least partially pay for the selectedproduct.